Wisconsin Demand Letter

Introduction

Key Things to Know

1. 1

   Wisconsin does not require a pre-suit demand letter before you sue for an unfair trade practice under Wis. Stat. Sections 100.18 or 100.20, but if you sue under Wisconsin Statute Section 943.245 on a dishonored check, that section requires you to notify the drawer by mail of your intent to sue at least 20 days before you file, and it reaches only a drawer who knew, should have known or recklessly disregarded that the check was worthless.

2. 2

   State your demand in specific numbers. Name the exact amount owed, the invoice, contract, or check it comes from, and a firm deadline to pay or act.

3. 3

   If a drawer who knew, should have known or recklessly disregarded that the check was worthless gave you a dishonored check, Wisconsin Statute Section 943.245 lets you recover the check's face value, any actual damages its face value does not cover, and exemplary damages of not more than three times that combined total, though exemplary damages and attorney fees together may not exceed $500; paying the check in full before you sue forecloses the drawer's liability.

4. 4

   Wisconsin's debt-collection chapter, Wis. Stat. ch. 427, which covers consumer transactions with an agreement to defer payment, up to the dollar limit in Section 421.202(6), and not business-to-business debts, defines a debt collector broadly enough to cover a business collecting its own customers' consumer debts, not only third-party collection agencies, and bars a debt collector from threatening criminal prosecution to collect a consumer debt, under Section 427.104(1)(b).

5. 5

   Wisconsin hears small-claims money disputes of $10,000 or less in the small-claims docket of circuit court under Wis. Stat. Section 799.01(1)(d) as of this writing (confirm the current limit with the court, since it rises to $15,000 on January 1, 2027 under 2025 Wisconsin Act 105), and unlike some states, Wisconsin allows either side to appear through an attorney in small claims, under Section 799.06(2).

6. 6

   Mind Wisconsin's statute of limitations: six years to sue on a written contract, an oral contract, or an open account, all under Wis. Stat. Section 893.43(1), and six years for property damage under Section 893.52(1).

7. 7

   Keep the tone firm and factual, not threatening. Do not threaten arrest, jail, or criminal prosecution to collect a debt; Wisconsin's debt-collection chapter separately bars a debt collector from threatening criminal prosecution to collect a consumer debt, under Section 427.104(1)(b). Section 138.04 sets a legal interest rate of 5 percent per year on the loan or forbearance of money, unless a written agreement sets a different rate.

Wisconsin Requirements for Demand Letter

• Dishonored-Check Notice and Damages

  Wisconsin Statute Section 943.245 lets a payee recover, from a drawer who knew, should have known or recklessly disregarded that the check was worthless, a dishonored check's face value, any actual damages its face value does not cover, and exemplary damages of not more than three times that combined total, though the combined total of exemplary damages and attorney fees may not exceed $500 per violation.

• Regular Mail Suffices for Bad-Check Notice

  Before suing under Section 943.245, the payee must notify the drawer by mail of the intent to bring the action at least 20 days beforehand; the statute permits this notice by regular mail supported by an affidavit of service of mailing, so certified or registered mail is not required.

• Paying Before Suit Forecloses Bad-Check Liability

  If the drawer pays the dishonored check in full before the payee commences a civil action, there is no liability under Wisconsin Statute Section 943.245.

• No General Consumer Pre-Suit Notice

  Wisconsin's general trade-practices statutes, Wis. Stat. Sections 100.18 and 100.20, let a person suffering pecuniary loss sue directly, with no notice, demand, or cure precondition to the private right of action.

• No Attorney-Fee Presentment Statute

  Wisconsin follows the American Rule for ordinary contract and account claims: each side bears its own attorney fees absent a contract clause or specific statute. Wisconsin Statute Section 814.04(1) instead lets a prevailing party tax a flat statutory cost of $100, $300, or $500 depending on the amount recovered, not conditioned on any presentment or demand.

• First-Party Creditors Covered as Debt Collectors

  Wisconsin's debt-collection chapter, Wis. Stat. ch. 427, covers consumer transactions with an agreement to defer payment, up to the dollar limit in Section 421.202(6), and defines a debt collector as any person engaging, directly or indirectly, in debt collection, reaching a business collecting its own customers' consumer debts. Section 427.104(1)(b) bars threatening criminal prosecution, and a prevailing customer recovers the greater of twice the finance charge ($100 to $1,000) or actual damages under Section 425.304, plus attorney fees under Section 425.308.

• Six-Year Limitations Period Across Contract Types

  Wisconsin gives six years to sue on a written contract, an oral contract, or an open account, all under the same period, Wis. Stat. Section 893.43(1), and six years for property damage not arising on a contract, under Section 893.52(1); unlike many states, Wisconsin does not shorten this period for an oral contract or open account.

• Small Claims Limit and Attorneys Permitted

  Wisconsin's small-claims docket within circuit court hears money claims of $10,000 or less under Wis. Stat. Section 799.01(1)(d) as of this writing, rising to $15,000 on January 1, 2027 under 2025 Wisconsin Act 105. Either side may appear through an attorney in small claims under Section 799.06(2).

• Legal Interest Rate Absent Agreement

  Wisconsin Statute Section 138.04 sets the legal rate of interest on the loan or forbearance of money at 5 percent per year absent a written agreement for a different rate. Separately, Section 814.04(4) adds interest from verdict to judgment at 1 percent plus the prime rate the Federal Reserve reports as of a set date each year, a floating mechanism rather than a fixed percentage.